Train ride price to rise

Photo: Urmas Luik / Pärnu Postimees

State to compensate Edelaraudtee for waiver.

To maintain the new and tighter train traffic timetable, Elektriraudtee needs extra money. According to Elektriraudtee CEO Andrus Ossip, he has applied for additional state subsidy of €1.5m; train ticket prices will rise to bus fare levels.

Mr Ossip confirmed that, at the beginning of July, Elektriraudtee entered a contract with Ministry of Economic Affairs determining railway travel for 2014-2017. «In the agreement, minimum volume of travel is stated; more specific volume will be agreed in October, latest,» said Mr Ossip.

Bigger subsidy

Number of diesel train trips to Tartu will increase to eight times a day; to Pärnu to four and to Rapla and Narva to six times. Six trips will also be made by the Tartu-Valga train.

Electric trains’ frequency will increase this year, already; the diesel trains’ new schedule, however, must enter into force by April 2014. By the beginning of 2014, Edelaraudtee’s old diesel trains should be exchanged for the new ones.

Mr Ossip said Ministry of Economic Affairs expects train passengers to increase by a half, long term; even so, he does not expect that to happen immediately.

«Our goal is to increase volumes of carriage of passengers; as the new trains are much more effective, this should lead to gain,» said he.

Mr Ossip added that Elektriraudtee has also applied for subsidies. While this year state subsidised electric and diesel train travel by €20.1m, next year they would need a sum bigger by £1.5-2m. Mr Ossip said the company asked for €1.5m more that this year’s total passenger train subsidies. According to Ministry of Economic Affairs, two extra million will be asked at budget talks.

One reason being the increased infrastructure fee. While Eesti Raudtee is being paid passenger trains track use fee of €2.7m, yearly, Edelaraudtee getting €5.7m, in 2014 the infrastructure fee alone will exceed that – amounting to a total of €9.5m. Pursuant to the fresh agreement between Elektriraudtee and Ministry of Economic Affairs, the fee may be increased if needed.

Compensation negotiated

In addition to state subsidies, ticket prices will rise also. So far, Elektriraudtee has avoided predicting the price.

Yesterday, Mr Ossip said that in 2014 train ticket price should rise to the bus ticket category.

«All said, trains are now cheaper that buses; in 2014, [train ticket price] should, however, be equal to or in the same category as bus tickets,» said Mr Ossip. «The quality of trains and schedules will improve; therefore, there is reason enough to ask for higher price.»

Mr Ossip confirmed that train traffic is supposed to become so fast and comfortable as to compete with private cars. At the same time he underlined that ticket prices are influenced by both state subsidies and numbers of passengers. Should numbers of passengers rise faster than expected, the need to raise prices may be smaller.

Currently, a Tallinn–Tartu bus ticket is €10.8, train ticket €9; Tallinn–Pärnu bus ticket costs €8.4, train ticket €5.5.

According to Ministry of Economy press secretary Martin Miido, negotiations are underway with Edelaraudtee to prematurely terminate contract. Edelaraudtee’s passenger carriage contract is valid until end of 2014; however, as stated, the government will assume all responsibility for arranging passenger train traffic in near future.

Mr Miido was not prepared to specify the sum demanded by Edelaraudtee for termination of the contract; even so, he did admit that compensation is being discussed.

«Ministry of Economic Affairs has delivered the notice of cancellation of contract in the beginning of 2014; right now we are discussing the direct damage caused to Edelaraudtee by premature cancellation of the contract, and the size of these,» said Mr Miido.

It has been earlier confirmed by the representative of Ministry of Economic Affairs that the state desired, with the new electric and diesel trains, to rearrange passenger train traffic as a whole. Not trusting Edelaraudtee, they handed the entire arrangement over to Elektriraudtee.

Yesterday, Edelaraudtee was unavailable for comments.